Social commerce startup Flip is mixing live commerce mobile apps with real customer reviews. The goal is to improve the shopping experience and the economic opportunity for creators. The Los Angeles-based company closed $ 28 million in a Series A funding round that was led by Streamlined Ventures.
The startup plans to use the capital to further develop its brand offerings and its creator ecosystem. In addition, to improve its end-to-end logistics platform. It also announced that it is launching commissioned video reviews for all users on its platform. This would allow them monetize your posts that others interact with. They can earn Flip credits or receive funds to their bank accounts.
In the fundraising announcement, Flip also tried to differentiate itself as a platform that allows content creators to make money from reviews of their products without pressure from partner brands to sound positive.
The beauty industry, in particular, is poised for disruption, shifting from paid influencers and promotions to honest testimonials from everyday users. The future of e-commerce will be driven by shoppers and the real-life experiences they share through social media. By connecting social video with a seamless commerce experience, we are creating a platform of authenticity, allowing brands and consumers to share their stories, while transforming the way we discover new products.
Noor Agha, founder and CEO of Flip.
Competition in the social market
As Flip raises money to develop its app, other apps compete for a share of the social commerce market. For example, Verishop introduced social commerce functions in your application last November. This allows users to tag products in their videos and photos, and to follow brands and other people. The following month, Instagram presented its Shopping in Reels feature, which allows sellers and creators to tag products when they make Instagram Reels. Even Snapchat has been associated with Verishop and Poshmark this year to create their own in-app shopping experiences on the platform.
In this way, companies have been shifting the focus from social media to commerce.